The United States has imposed a staggering 58.26% tariff on Indian shrimp exports—effective August 27—combining 50% reciprocal tariff with existing countervailing (5.77%) and anti-dumping duties (2.49%)
Fast-Growing Risks for Indian Shrimp Sector
A recent Crisil Ratings report estimates that this tariff hike will cause shrimp export volumes to fall by 15–18% in the current fiscal year. экспорт revenues are likely to drop 18–20% year-on-year, despite exporters attempting freight surges ahead of the change
Profitability will be severely impacted, with operating margins expected to shrink by 150–200 basis points, eroding credit metrics and putting pressure on exporters’ financial profiles
Export Diversification as a Survival Strategy
Exporters are scrambling to mitigate the impact by shifting focus to alternative markets like the UK, China, and Russia, where tariff barriers are less steep or non-existent. However, the U.S. – traditionally the dominant destination—still accounts for nearly half (48%) of India’s shrimp exports from a $5 billion industry in FY25
Industry Pushback & Call for Support
Indian seafood associations have signaled they can’t bear the tariff burden and may pass it to U.S. buyers—raising the risk of reduced demand and strained trade ties
Industry leaders, particularly from shrimp-dependent regions like Odisha and Andhra Pradesh, urge the government to bolster the domestic market, secure relief mechanisms, and accelerate export diversification efforts
